Branding Becomes Key as CBD is Expected to Overtake the Cannabis Market

POINT ROBERTS, Wash. and DELTA, British Columbia, Feb. 08, 2019 (GLOBE NEWSWIRE) — Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot reporting on the CBD market As it grows, branding becomes essential to companies hoping to stand out.
According to Brightfield Group analysts, the CBD market is expected to hit $22 billion by 2022, overtaking the cannabis market with $20 billion by 2020. This is good news for most companies in the sector, but it also adds to market saturation, which means brand awareness may be the only way to stay ahead of the pack.

Tilray, Inc. ( NASDAQ: TLRY ) announced in January that they have signed a long-term revenue-sharing agreement with Authentic Brands Group (“ABG”) to market and distribute a portfolio of consumer cannabis products within ABG’s brand portfolio.
The parties will leverage ABG’s portfolio of brands to develop, market and distribute consumer cannabis products around the world, as and where legal, with an immediate focus on opportunities, including CBD, in Canada and the US, subject to applicable and brand appropriate regulations.
Daniel W. Dienst, ABG Executive Vice Chairman, said, “Tilray’s unyielding focus on science, product quality, operational excellence and innovation has allowed them to quickly emerge as a leader in the cannabis industry. We see the extraordinary potential for cannabis in the fast-growing health and wellness category – particularly for CBD products in the United States and around the world – and are excited about this long-term partnership.”
GGB Beauty LLC, a subsidiary of Green Growth Brands Inc. ( CSE: GGB ) ( OTCQB: GGBXF ), announced yesterday that it will also be working with Authentic Brands Group and the Greg Norman brand. The Agreement is to develop a line of CBD infused personal care products designed for active adult men and women. As part of this arrangement, the Company will be working with Tilray Inc. as the preferred supplier of the CBD ingredients to be used in these products.

This is the latest in a series of new developments related to GGB’s pipeline of value-creating initiatives and strategic partnerships, including its recent distribution agreement with DSW Inc. Through its subsidiary GGB Beauty, GGB is well-positioned to maximize opportunities in the emerging CBD market following the recently adopted 2018 US Farm Bill.
Though not focused solely on CBD, The Supreme Cannabis Company, Inc. ( TSXV: FIRE.V ) ( OTCQX: SPRWF ) has made their brand through their wholly-owned subsidiary, 7ACRES. In September 2018, 7ACRES entered into a supply agreement to provide dried cannabis to Tilray Canada Ltd., a subsidiary of Tilray Inc. ( NASDAQ: TLRY ), estimated to be in excess of C$2 million.
7ACRES was recognized as the ‘Brand of the Year’ at the 2018 Canadian Cannabis Awards presented by Lift & Co. The Canadian Cannabis Awards celebrates Canadian cannabis, distinguishing the people, companies, and products that make it great. 7ACRES was selected by a panel of industry professionals across a variety of sectors in the cannabis space. The award recognizes the enormous effort behind creating a brand, strategy, culture, image, and impact that resonates in the public consciousness.
“We are extremely honored to have been recognized as Brand of the Year by the Canadian Cannabis Awards. The Team at 7ACRES works incredibly hard and are very proud of the products and the culture we have cultivated since day one,” said John Fowler, President & Founder of Supreme Cannabis. “Since our founding, our organization has been dedicated to ensuring the highest quality product and innovation, developing an industry-leading team, and incredible corporate culture.”
With so much focus on the US and Canada, we can sometimes forget that cannabis is a global industry, a fact Khiron Life Sciences Corp. ( TSXV: KHRN.V ), ( OTCQB: KHRNF ) isn’t ignoring. Khiron and Dixie Brands Inc. recently signed a binding letter of intent to establish a 50/50 joint venture to introduce a full line of cannabis-infused products to the Latin American market. Dixie will also manufacture and distribute Khiron’s Kuida® brand of CBD-based cosmeceuticals in the United States, targeting the growing Hispanic population, estimated at almost 60 million.
By combining Dixie’s market-ready portfolio of cannabis-infused products with Khiron’s established footprint throughout Latin America, a 620 million person market, the companies aim to capture first-mover advantage and establish leadership in one of the world’s fastest-growing cannabis markets. The agreement also creates a framework for the development of new products and brands tailored to Latin America, allowing Dixie and Khiron to take full advantage of opportunities resulting from cannabis legalization throughout the region.
Brand awareness will become essential for first market movers over the coming months as CBD continues to gain traction. By this time next year, companies like Green Growth Brands or Tilray could aim to have their brands become as familiar to consumers as Coca-Cola or Budweiser.
For investors following cannabis stocks, view our stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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